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Cannabis stock stability after the first earning earnings Aurora Christmas season



The cannabis stocks were higher throughout the board of Tuesday, as investors were digested to the first earnings of the season and the first look at a pot banking bill that Democrats expect to go in 2019.

Aurora Cannabis Inc.

ACB, + 1.81%

ACB had a final trading of up to 2%, + 2.00%

after the company said it was almost five incomes and got Fourth share strong market share in fiscal, but also due to a reduction in equity-related marijuana equity. Aurora invests significantly in other companies in the sector and must track their performance as part of their earnings. Those adjustments amount to C $ 1

90 million ($ 143 million) for their losses and it has become a sales in the sector.

The numbers show the first quarter since the launch of legal cannabis sales in Canada in October, the first industrialized nation to allow recreational sales of the substance. Aurora said C $ 21.6 million of its total sales of C $ 54.2 million came from Canada, which lacked a lack at the beginning of the new regime.

For more information on Aurora, see: Aurora Cannabis earnings show a great deal in pot sales, but an interest-bearing trend

Supreme Cannabis Co. Inc.

FIRE, -3.08%

SPRWF, -1.48%

shares were down 3% after posting the company's earnings for its second fiscal quarter. The company had a net loss of C $ 1.55 million, or a share of 1 cent, in the second fiscal quarter until December 31, to exceed the $ 2.03 million, or share a 1 cent, in the previous period. Revenue rose to $ 7.72 million from $ 1.68 million.

However, the company may be too optimistic in the value of its cannabis plants before it is sold. The Supreme said that the changes in fair value for the growth of its biological assets have reached C $ 10 million, but the fair value changes made on selling or weakening inventory are C $ 6 million. Cooperation with C $ 6 million is with the production costs of C $ 4 million than the amount of C $ 7.72 million revenue.

Read now: Marijuana IPOs in 2019: These companies may be the first hot pot stocks

Under International Standards of Financial Reporting, or IFRS, the standard used in Canada, companies are required to value their biological asset at various stages of their development as a way of earning up to time. In the case of cannabis companies, it means that they must quote the theoretical value of the bar before selling it, according to Mike Miller, a finance director at the White Sheep Corp. private equity firm. If they are selling it for less than the value assigned to it, they will have to adjust in the following quarter.

"Cannabis market has a huge volatility in price, making it difficult to guess the biological assets involved," he said. With the industry still thereafter, there are no future markets to help pricing and there were many price estimates based on medical cannabis prices that were higher than the prices that could get retailers for recreational cannabis, which he said.

"If 100% were accurate, the production cost should be equal to the income number and adjustment and zero. This will be the case with many companies this earning season, and until they mature the industry, "he said.

Read more on the subject: How can marijuana companies benefit from selling a pot

Cannabis earnings preview: Cannabis earnings: D & # 39; Pot Bridge could drop Pot stocks with Aurora and others in red ink

Also Tuesday, MedMen Enterprises Inc.

MMNFF, + 1.24%

Adam Bierman issued a statement of the Chief Executive or defended himself against allegations made by former Chief Financial Officer James Parker in law. Parker, who graduated in November, included a half-cut equity increase, calling for the company in the Supreme Court of Los Angeles to override the wrong contract and winding, among other things. At the time, MedMen refused to comment on the CFO event and said that almost half of the funding was being cut due to "significant sales" in the global market.

Bierman said Parker had been working in MedMen for less than 18 months before he lasted for last week and has "filed an inappropriate non-wound-up law for his financial gain now. We will protect strong ourselves in court, "he told MarketWatch in a statement.

Parker suits that he has been voluntarily wound up voluntarily and a company "would have a" blind eye and deaf ear to improper and illegal behavior ". The performance further alleged that "it was facing an environment that was full of flight, homophobic and illegal events and ways, drug and alcohol misuse, lacking personal due to the words and deeds of the Chief Executive and the President of the company," Other issues.

Bierman said he was married to a Latin woman in the last 15 years, and Andrew Modlin, co-founder of MedMen, is a young openman. MedMen shares were down 5%.

In the meantime, the democratic leaders of the US conferences were circulated with a draft bill that would enable cannabis companies to put their profits into bank, according to Marijuana Moment, a website that works with activists, industry representatives and makers A policy on trends affecting cannabis. [19659002] The lack of access to banks-capital markets is due to the federal ban on cannabis after blocking the development of the sector. The Bill Financial Services Committee released the bill before a scheduled meeting for Wednesday on the subject. Democrats are looking at other legislative measures in 2019 to promote the sector, including tax balance, military access to military archeology and the removal of current barriers to medical research by Marimuana Moment.

If you lost it: Cannabis stocks come across the board as Aphria refuses to bid, confuses CBD

. Other parts of the sector, Canopy Growth Corp..

CGC, + 3.52%

WEED, + 2.94%

shares up 3.3%, Cronos Group Inc.

CRON, + 2.53%

CRON, + 2.44%

shares up 3.5%, Aphria

APHA, + 8.95%

APHA, + 8.54%

shares were 8% higher and Tilray Inc.

TLRY, + 1.17%

was up to 1.3%.

Hexo Shares Corp.

HEXO, + 4.78%

HEXO, + 4.85%

was 4.9% up, Aleafia Health Inc.

ALEF, + 9.39%

ALEF, + 9.39%

was up to 9%.

ETFMG Alternative Harvest ETF

MJ, + 2.68%

was up 3% and ETE Life Sciences Marijuana Vision

HMMJ, + 2.89%

was up 3.2%.

Additional Report by Max Cherney

To cover all MarketWatch on the cannabis sector, click here.


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